The Federation Account Allocation Committee (FAAC) has distributed a total of N1.894 trillion in February 2026 revenue to Nigeria’s three tiers of government, a process concluded during its March meeting in Abuja. The allocation, drawn from the Federation Account, reflects the actual revenue available for sharing after statutory deductions.
The distributable sum comprised N1.274 trillion from statutory revenue and N619.119 billion from Value Added Tax (VAT). This follows a gross revenue of N2.230 trillion recorded for February, from which N77.302 billion was deducted for collection costs and N259.078 billion accounted for as transfers, refunds, and savings.
Compared to January 2026, both major revenue streams fell. Gross statutory revenue decreased by N395.138 billion to N1.561 trillion, while gross VAT revenue dropped by N414.710 billion to N668.450 billion. The communiqué noted increases in oil and gas royalty and excise duty receipts during the period, but substantial declines were recorded in Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and VAT. Import duty and Common External Tariff (CET) receipts saw marginal growth.
From the N1.894 trillion, the Federal Government received N675.088 billion. State governments shared N651.525 billion, while local government councils received N456.467 billion. An additional N110.949 billion, representing the 13 per cent derivation revenue from mineral sources, was allocated to benefiting states.
A detailed breakdown of the statutory revenue portion (N1.274 trillion) showed the Federal Government with N613.174 billion, states with N311.010 billion, and local councils with N239.776 billion, alongside the derivation allocation. From the VAT pool (N619.119 billion), the Federal Government took N61.912 billion, states received N340.515 billion, and local councils were allocated N216.692 billion.
The distribution follows Nigeria’s established revenue allocation formula, which dictates vertical sharing among the federal, state, and local governments and includes a derivation component for states producing mineral resources. The February allocation highlights the volatility in key revenue sources, particularly the significant drop in VAT and statutory receipts from the previous month, which may impact budgetary planning at subnational levels. The meeting was chaired by the Accountant-General of the Federation, with state finance commissioners and local government representatives in attendance.
